All Forum Posts by: Matthew Holland

I'm also looking for a PM for my property in cleveland heights!

I'm also looking for a PM for my property in cleveland heights!

Hello BP Crew,

I'm about to sell a property where I have around $100k in short term capital gains.  I have sole ownership with just my name on the title.  Can I do a 1031 exchange and buy a property where I will have joint ownership with another person?  The other person would be a partner (not a spouse).  

Thanks in Advance.  Any advice is greatly appreciated.  

Hello BP Crew,

I purchased a foreclosure property in January 2022, did a rehab, and am now able to sell it 3 months later with a around ~$100k short term capital gain.  Since it's only been 3 months, I'm looking for ways to reduce my tax liability.  I've been thinking recently about doing seller financing to spread out the tax liability.  

My question:  If I were to provide seller financing (10 year), would the payments after year 1 be taxed as short term or long term capital gains?  There was only about 3-4 months of time in between the time I acquired and sold the property.  However for the majority of the payments I would receive, it would be more than 1 year of time between the time I acquired the property and the time I received payment.  

I've also considered 1031 exchange, however I'm not sure I will have the bandwidth to take on a new project in the next couple of months.  

Any advice is greatly appreciated!

Thanks @Dave Foster and @Steve Morris
Appreciate the insights

I just sold an investment property that I received through a foreclosure a few months prior.  We did a quick all-cash close and I didn't even consider the idea of doing a 1031 exchange for this property.  COE was a couple days ago and I have already received the funds into my bank account.  

Question for the BP community:

- Is it too late to initiate a 1031 exchange even though COE has already happened?  My understanding is that you need to use a qualified intermediary before closing who will hold the 1031 funds in separate escrow account.  

I held this property for less than a year and I'm really hoping to minimize the short term cap gains taxes (Fed+CA) that I will likely owe.  I will definitely do better tax planning next time.  Any suggestions would be appreciated!

In 2015-2017 I purchased a bunch of tax liens. For the first time, I had one of the liens not paid off after 3 years. I started the foreclosure process earlier this year and it was just completed and the title was switched into my name.

I live in CA so I sent over someone to check out the property and look into changing the locks. It turns out the property is still occupied by the previous owners.

I'd like to ask the BP community for recommendations on what they think would be the best course of action in regards to this property. I don't have a strong preference for either selling or renting the house.

Some thoughts/questions I had:

- Would you recommend I try to evict the people living there?
- Could I sell something like this on auction.com?
- Should I see if the previous owner would be willing to sign a lease and start paying rent?
- Am I allowed to contact the previous owner directly? Should I try to hire a lawyer to do this for me?
The property is in Pinal County, AZ. I called a few property managers and most were not interested in taking on management of this property.

Any insights are greatly appreciated!

Matt

reposting in correct section.  pls delete

@Simon W. - They provided all of the invoices.  There are separate invoices for the permit costs and architect.  The architect didn't pay any of the the permit costs.  The full description of services they had with the architect was: 
"The architect shall prepare the architectural submittal set for conversion of bedroom into a bathroom at the single family house located at {address inserted}"

The invoices for permits & architectural services broke down to the following:

Architect Invoice - $1,300

Invoice from City for Permits - $1,200

Permit Runner Costs - $300

Hi @Simon W., really appreciate your insight on this.  The plans/drawings that I provided were made by an experienced real estate professional however they are not a licensed architect.  They had made drawings in the past for other renovation projects which were sufficient for obtaining the permits from the city